The saving patterns of retired US households pose a challenge to the basic life-cycle model
of saving. The observed patterns of out-of-pocket medical expenses, which rise quickly with …

This article reviews macroeconomic models with heterogeneous households. A key
question for the relevance of these models concerns the degree to which markets are …

The old age provisions of the Medicaid program were designed to insure retirees against
medical expenses. We estimate a structural model of savings and medical spending and …

What generates the observed differences in economic outcomes by health? How costly it is
to be unhealthy? We show that health dynamics are largely driven by ex-ante fixed …

We consider a life-cycle model with idiosyncratic risk in earnings, out-of-pocket medical and
nursing home expenses, and survival. Partial insurance is available through welfare …

We construct a unified objective measure of health status: the frailty index, defined as the
cumulative sum of all adverse health indicators observed for an individual. Using this index …

The degree to which retirement decisions are driven by health is a key concern for both
academics and policy makers. In this review, we survey the economic literature on the health …

Estimates of how health affects employment vary considerably. We assess how different
methods and health measures impact estimates of the impact of health on employment …

Two key components of the recent US health reform are a new regulation of the individual
health insurance market and an increase in income redistribution in the economy. Which …

We quantify what drives the rise in medical expenditures over the life-cycle using a
stochastic dynamic overlapping generations model of health investment. Three motives for …